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February 2023
School PFI contracts to be reviewed
News Centre
School PFI contracts to be reviewed
Posted on : 23 Feb 2023
The provision of building maintenance, catering and grounds maintenance services at two large secondary schools in the Caerphilly county borough will be considered by councillors over the coming weeks.
Lewis School Pengam and Ysgol Gyfun Cwm Rhymni were originally built as part of a Private Finance Initiative (PFI). This type of PFI contract enables projects to be delivered via a partnership arrangement between a local authority and private investors.
The council entered into a 30 year PFI agreement back in 2002, which involved the construction and operation of both school sites by a consortium of private companies.
Although there are still 9 years left to run on the original PFI contract, the council has indicated that key benefits could be gained if the contract is terminated early.
Cllr Carol Andrews, Cabinet Member for Education said, “Should full Council ultimately decide to support this decision, it will bring about parity in the way Caerphilly Schools are funded and operated by the local Authority.”
”As well as ensuring a fairer approach to funding across all of our schools, the council can also generate significant annual savings through the early termination of the PFI contract.”
“It is important to note that this is purely a contractual matter between the council and the PFI consortium on a number of non-educational services and will have no impact on pupils or teaching staff at the schools.”
The future of the PFI contracts will be considered by the council’s Joint Scrutiny meeting next week (28/02/23) before going on for final determination at meetings of Cabinet and Full Council in March.
“We will keep both school communities informed and updated throughout the process,” added Cllr Andrews.
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